HARBOUR Ring International Holdings executive director Lewis Luk Tei is adamant that the company has its priorities right.
He believes the company is a toy company first and foremost, not a property counter.
'The toy business will always be the main business of the company,' he said.
'We are not thinking about diversifying into any other business and we can confidently say that up to now we are still the number one toy manufacturer in Hong Kong.
'So why wouldn't we work to maintain that position instead of entering into other areas like property where if you look at the ratings we count for nothing.' Why indeed? Because toy-makers like Mr Luk have been bludgeoned by ever escalating production and labour costs which in some cases have gone up by between ?30 and ?60 per cent in the past year, squeezing profit margins.
Last year Harbour Ring reported what analysts described as a 'somewhat disappointing' ?$322.9 million net profit for the year to December 31, 1994.
Industry analysts said production costs for resins would continue to rise, possibly further squeezing profits in the industry this year.
